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The graph shows the cost and revenue curves for a monopoly that produces teddy bears. The letters in the graph represent the enclosed areas. Price
The graph shows the cost and revenue curves for a monopoly that produces teddy bears. The letters in the graph represent the enclosed areas. Price P D C P MC = ATC D MR 0 Q1 Q2 Quantity 3. If the monopolist charges a single price for teddy bears, which of the following describes an accurate outcome? 23 (A) The consumer surplus equals area (a), the producer surplus equals area (c), and the deadweight loss equals area (b + d + c). (B) The consumer surplus equals area (b), the producer surplus equals area (c + d), and the deadweight loss equals area (d + c). (C) The consumer surplus equals area (a + b), the producer surplus equals area (c), and the deadweight loss equals area (e + f). (D) The consumer surplus equals area (a + b), the producer surplus equals area (c + d), and the deadweight loss equals area (e). (E) The consumer surplus equals area (a), the producer surplus equals area (c + f), and the deadweight loss equals area (b + d + c)
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